French Hotel Industry Performance - October 2015

2 December 2015
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As the months go by, the pattern observed thus far is becoming stronger. Although year-to-date performances at the end of October were more or less balanced, October marked a strong decline in almost all categories, compared (true) to a good October 2014. The sharp drop in Ile-de-France hotel performances was decidedly the most striking feature and dragged down average performance in France as a whole.

Further to a gloomy summer and early autumn, October marked a downward trend in all categories throughout Ile-de-France. Although a comparison with the same period 2014 should be put in perspective, October 2015 saw a sharp drop in monthly performance: upper-end categories were the only ones in Paris to maintain slight RevPAR growth (+1,3%). Pricing efforts undertaken by Parisian hoteliers (ARR down by -2,6% to -12%, depending on the category) did not manage to boost occupancy, itself generally in decline. In contrast, and as with previous months, regional France and the Côte d'Azur posted encouraging results.

Yearto-date RevPAR growth at the end of October was relatively comfortable (+0,7% to +7% in regional France, and +4,7% to +12% on the Côte d'Azur). Indeed, the Indian summer helped boost demand in tourist areas, with coastal areas all recording respectable performances: Bayonne-Anglet-Biarritz, Bordeaux, Montpellier, Marseille, Nice and Le Havre. It is feared that certain damaging effects evoked last month (impact of the emergence of the collaborative economy) will be amplified in the weeks and months to come by the repercussions of November's tragic events in Paris. These are likely to manifest themselves in falling occupancy in both Paris' hotels, but also elsewhere. Although the Côte d'Azur and regional France, given the solid performances recorded thus far in 2015, are likely to finish the year on a high note, the end of the year will most certainly be more complex for Ile-de-France.

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